IndustryGECAS cancels orders for 69 Boeing 737 MAX aircraft

20.04.2020

Leasing company GE Capital Aviation Services (GECAS) has announced that it has cancelled orders for 69 Boeing 737 MAX aircraft.

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The decision to rebalance the lessor´s skyline orderbook for 737 MAX aircraft was made mutually between GECAS and the Boeing Company. Main reason for the drop of the order was the decreased demand in the aircraft, both reasoned by the MAX saga and the Coronavirus.

GECAS President and CEO Greg Conlon said: “Today’s agreement will help GECAS better align our available fleet with the needs of our global customer base. We remain fully committed to the 737 MAX program and our valuable, long-term partnership with Boeing.”

The leasing company released, that the details of the agreement remain confidential, but includes the termination of orders for 69 undelivered 737 MAX aircraft. Currently, the company has 82 of the aircraft types on order and has 29 aircraft currently delivered, but grounded.

After two 737 MAX 8 aircraft from Lion Air and Ethiopian Airlines crashed due to a software-fault, the aircraft was globally grounded until a new solution was found. On the way to a software update, new faults came out in the open, delaying the process of re-certification. Now, as the Coronavirus keeps the aviation industry in suspense, Boeing has reduced productions which furthermore delays the process.

Last week, leasing company Avolon announced, that it has cancelled its order for 75 Boeing 737 MAX aircraft. The company took this decision to preserve the cash flow in these uncertain times. This means, Boeing has lost 144 orders for its 737 MAX programme in a single week.

Boeing expects the 737 production to be resumed today to fight the re-certification process of the MAX series. Other assembly lines in Renton, Washington and the facilities in the Puget Sound area will be re-opened step by step.